Wall Street Overreacts to Data But Fed Shouldn't, Kashkari Says

‘We can’t make policy based on market blips’: Kashkari
Minneapolis Fed chief speaks in interview on Bloomberg TV

Kashkari discusses the Fed’s rate path and the wording of FOMC statements.(Source: Bloomberg)

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By Matthew Boesler

February 21, 2018 at 4:03 PM UTC

This article is for subscribers only.

U.S. central bankers should not allow financial markets to dictate their interest-rate decisions, Federal Reserve Bank of Minneapolis President Neel Kaskhari said, playing down the importance of recent inflation readings as just one month’s worth of data.

“Wall Street overreacts to everything,” Kashkari said Wednesday in a Bloomberg Television interview with Michael McKee. “They overreact on the upside, they overreact on the downside. We can’t make policy based on market blips up and down.”